Ref. No. _________ TOR Form No.

1 Terms of Reference

I.

Title: Development of the Integrated Procurement, Logistics and Financial Management Information System

II. Type of TA Service or Product: Consulting Firm for Systems Development III. TA Client
: Procurement Service (End-User) Funding Source : WB- EC Grant IV. Background and Rationale: Delivery of health goods and services can be compromised due to inefficient and ineffective procurement, logistics and financial management. The Department of Health (DOH) has to manage health expenditures, allocate scarce resources efficiently, and establish management and information systems to support the implementation of health programs and the delivery of health services. Republic Act 9184, or the Government Procurement Reform Act, institutionalized procurement planning functions and a procurement monitoring system in all procurement of national government, its departments, bureaus, offices and agencies including state universities and colleges, government-owned and/or controlled corporations, government financial institutions and local government units. RA 9184 promotes transparency in the procurement process and in the implementation of procurement contracts, extends equal opportunities to contracting parties, streamlines procurement process, promotes system of accountability, and monitors the procurement process. The procurement process in the DOH is in compliance with RA 9184. The DOH has existing computerized Information Systems on Work and Financial Plan, Price Monitoring System, Simplified Suppliers Registration System, Annual Procurement Planning, Purchase Ordering to Department of Budget and Management, Generation of RIV and Stock Inventory System on drugs and non-drugs. Furthermore, the DOH has implemented the Electronic New Government Accounting System developed by the Commission on Audit. It is for this reason that an integrated system solution, named as Integrated Procurement, Logistics and Financial Management Information System shall be developed to integrate, enhance and/or re-engineer the systems to simplify the entire procurement, logistics and financial systems. V. Objectives: The objectives of the IPLFIS project are as follows:

1. Strengthen the existing DOH manual and/or computerized procurement, logistics,

warehouse and financial systems. 2. Develop, enhance and/or integrate existing procurement, logistics, warehouse and financial systems, processes, and/or data. 3. Establish the database for the IPLFIS. 4. Provide comprehensive, consistent and reliable information critical to effective monitoring and evaluation of procurement activities. VI. Scope of Work: The scope of works includes three (3) areas of concerns, i.e., System Development Activities, Integration of the Procurement Operations and Management Information System (POMIS), Warehousing System (ERIC) and the Electronic New Government Accounting System (ENGAS), and System Implementation.

A. SYSTEM DEVELOPMENT ACTIVITIES 1. The Consulting Firm shall perform the following activities in developing the identified systems for the IPLFIS:

i. Project Planning and Management.

This initiates the basic project start-up procedures, plans the activities, technical and quality tasks, and establishes the standards on monitoring and evaluating the project to assure quality deliverables.

ii. Functional Requirements Analysis and Design. This documents the existing
systems, gathers the needs or requirements of the IPLFIS, and translates these into functional design.

iii. Technical Analysis and Design.

This translates the functional design into technical requirements and design, and serves as a vital input to Software Development.

iv. Software Development. This writes or codes the IPLFIS programs based on the technical design. v. System Testing. This tests the IPLFIS and confirms the requirements of the users in accordance with the functional design.

vi. System Implementation. This ensures that the DOH shall be able to operate and
operationalize the IPLFIS. 2. Identified systems for development/enhancement are as follows (See Annex 1.0 for the diagram): i. ii. iii. iv. v. vi. vii. Enhancement of the Health Commodity Reference Information System Central Office Stock Inventory for each offices CHD and Hospital Web-Based Procurement Reporting and Monitoring System CHD and Hospital Web-Based Financial Reporting and Monitoring System CO Budget and Expenditures Monitoring System Enhancement of the Property Management Information System Integrated Knowledge Logistics and Financial Web Service

3. Project starts from the Formulation of the Inception Report and ends when the DO
CO IPLFIS Implementing Team has been trained, system installed in an operational environment, and duly accepted by the DOH Project Management Committee assigned to the project. 4. System warranty for three (3) months starts the following day after the system has been accepted by the end-users. B. IPLFIS SYSTEM COMPONENTS

1. The IPLFIS shall integrate the following information systems developed and/or
implemented by the DOH (See Annex 1.0 for the diagram):

i.

Required data to/from the Integrated Bureau of Food and Drugs Information System to the POMIS ii. Required data to/from the Electronic Essential Drug Price Monitoring System to the POMIS iii. Required documents from Budget/Cashier to the Integrated Knowledge Logistics and Financial Web Service (IKLFWS) iv. Required data to/from the ERIC (Jupiter System) to the POMIS.

v. vi.

vii.
viii.

Transfer of data to/from the POMIS database to the ENGAS Transfer of data from the ENGAS to the CHDFRM database Transfer of data from the CHDFRM database to the WFP database Transfer of data from the ENGAS to the WFP database

2. Features, functions and capabilities of the IPLFIS shall conform to the

requirements of the Central Office, Centers for Health Development offices, and pilot health facilities under the local government units. 3. 4. The following MINIMUM functional requirements shall be incorporated into the IPLFIS: # 1 FUNCTIONAL REQUIREMENTS Flexibility in System Implementation DESCRIPTION The IPLFIS can easily be implemented in the DOH CO, CHDs, government-retained hospitals and local government units. The ILFMIS can be setup and configured to meet the needs of these users. Provide backup and recovery procedures or facilities to ensure continuous operation even during downtimes, breakdowns and/or disasters. Create a Central Database Storage/Archiving System and Backup Facility to store the data. Make system procedures, input and output requirements compliant with RA 9184 and other applicable laws, regulations and policies of the government. Provide end-users secured access to the system. Convert existing records into a digital database if applicable or necessary. Include security mechanisms to protect the integrity and security of the data and system. Comply with the DOH ICT technical standards to ensure continuing maintenance of the system. Include parameters for changing variables or conditions. Provide built-in data entry validation and/or verification. Make the system easy to use by allowing endusers to navigate easily through the system functions and facilities.

Backup and Recovery Procedures Central Database Storage and Backup Facility Compliance with Laws and Standards

3 4

5 6

System Access Data Capture, Conversion and Transfer of Technology Data Security and Integrity, Privacy and Protection Interconnectivity and Dynamism Parameter Driven Rules and Built-In Triggers Verification and Validation User-Friendly

7 8

9 10 11

C. SYSTEM IMPLEMENTATION

Scope of system implementation for this project shall cover the training of the Central Office and Regional Technical Support Personnel Trainors. The DOH shall create the DOH Central Office and Center for Health Development IPLFIS Training and Technical Support Team who shall be responsible for training the end-users of the system, and extending technical support during full system implementation. I. PROJECT STANDARDS To ensure continuing maintenance of the system after the end of this project, the development of the IPLFIS shall comply with the following Information and Communication Technology standards of the DOH: 1. Programming Language Client-Server Technology Web-based Application 2. Database Management System Sybase-ASE Sybase-ASA MS-Access My-SQL PowerBuilder HTML, PHP

3. Operating System Windows 2003 VII. Expected Outputs or Deliverables: The outputs of the project shall include the following during the Contract Execution Stage: ACTIVITY # 1 2 ACTIVITY DESCRIPTION Project Planning and Management Functional Requirements Analysis and Design DELIVERABLES Inception Report - Functional Design Document - System Test and Acceptance Plan - System Implementation Plan - System Training Plan - Progress Report - Technical Design Document - Progress Report Presentation of the Software Prototype - System Test Results - Software Operations Manual - Working ILFMIS - Progress Report - System Training Report - System Implementation Report - Progress Report

3 4 5

Technical Analysis and Design Software Development System Testing

System Implementation

Note: Contents of deliverables shall comply with the DOH-Information Management Service

standards on technical documentations.

VIII.Project Sites: i. ii. iii. DOH Central Office 17 CHDs 71 DOH Hospitals

IX. Implementation Arrangement:

a.

Contact:

JOVITA V. ARAGONA Division Chief Systems and Software Development Division Information Management Service Department of Health Sta. Cruz, Manila Tel./Fax No. 7116744 Email: jvaragona@co.doh.gov.ph

b.

Project Management or Contract Administration Arrangement: Creation of a Systems Development Team (SDT - representatives from the end-users and Information Management Service of the DOH). The SDT shall be headed by a system person who can provide clear direction and supervision in the development of the system. Reporting obligations, notices, and approval process including minimum or essential reports contents: The Project Consultant will report directly to the Project Manager of the SDT. The Project Manager of the SDT will approve notices and acceptance of deliverables, activities and other related tasks. X. Roles and Responsibilities:

c.

1. Information Management Service and End-Users from DOH-CO a.

Be responsible for the timely provision of all resources, access, information, and decision-making under its control necessary for the System as identified in the Agreed and Finalized Project Plan, except where provision of such items is explicitly identified in the Contract as being the responsibility of the Consultant. Delay by the end-users may result in an appropriate extension of the time for operational Acceptance or accomplishment/conclusion of the project as agreed by both parties. b. Ensure the accuracy of all information and/or data to be supplied to the Consultant, except when otherwise expressly stated in the Contract.

c.

Assist in coordinating with and issue instructions as may be necessary or appropriate to other government agencies for the prompt and effective implementation of the services. d. Provide sufficient, properly qualified operating and technical personnel, as required by the Consultant to properly carry out the project at or before the time specified in the TOR, and the Agreed and Finalized Project Plan. e. Designate/assign appropriate staff for the system testing and make all appropriate logistical arrangements. f. Assume primary responsibility for the Acceptance of System.

g.

Make prompt reviews and revision of the work produced and presented by the Consultant in the different phases of the work/services.

h. Endorse to the funding agency the payment of the Consultant upon presentation of the required materials, documents and other outputs, the amount due from receipt of claims supported with documents subject to acceptance of deliverables by the end-users. i. j. Provide office space as may be required by the Consultant. Photocopy and reproduce manuals and documentation. 2. The Consulting Firm shall: a. Perform the services and carry out the obligations with all assiduousness, efficiency, and economy, in accordance with generally accepted professional techniques and practices, and shall observe sound management practices, and employ appropriate advanced technology and safe methods.

b. c.

Conduct all activities with due care and diligence, in accordance with the Contract and with the skill and care expected of a competent provider of the services required. Acknowledge that any failure to acquaint itself with all such data and information shall not relieve its responsibility for properly estimating the difficulty or cost of successfully performing the Contract.

d.

Be responsible for the timely provision of all resources, information, and decision making under its control that are necessary to reach a mutually Agreed and Finalized Project Plan within the time schedule specified in the TOR. Failure to provide such resources, information, and decision making may constitute grounds for termination.

e.

Comply with all laws in force in the Philippines. The laws will include all national, provincial, municipal, or other laws that affect the performance of the Contract and are binding upon the Consultant. The Consultant shall indemnify and hold harmless the DOH from and against any and all liabilities, damages, claims, fines, penalties, and expenses of whatever nature arising or resulting from the violation of such laws by the Consultant or its personnel, including the Subcontractors and their personnel. The Consultant shall not indemnify the DOH to the extent that such liability, damage, claims, fines, penalties, and expenses were caused or contributed to by a fault of the DOH. f. Abide by all the terms and conditions stipulated in the project contract. g. Submit to the IMS the final materials, reports and documents specified in the TOR or agreed upon during negotiation. h. Do progress reporting as shall be agreed upon. 5. All outputs of the project such as specifications, designs, reports, and other documents, materials, data and software developed by the Consultant for the DOH shall become and remain the property of the DOH, and the Consultant shall not later than upon termination or expiration of the Contract, deliver all outputs to the DOH, together with a detailed inventory thereof. The Consultants may retain a copy of outputs but use of are subject to the restrictions about future use of these outputs, documents and software, is subject to the approval of DOH. 6. All computer programs developed by the Consultant shall be the sole and exclusive property of the DOH. 7. Copyright. `The Intellectual Property Rights in all System Software and General-Purpose Software and proprietary Materials or methodologies shall remain vested in the owner of such rights. 8. For the purpose of security and confidentiality, the following are the arrangements:

a.

The DOH and the Consultant shall each keep confidential and shall not, without the written consent of the other party to the Project divulge to any third party any documents, data, or other information of a confidential nature, furnished directly or indirectly by any of the Parties in connection with the Project; or where the Consultant is the Receiving Party, generated by the Consultant in the course of the performance of its obligations under the Project and relating to the businesses, finances, Consultants, employees, or other contacts of the DOH or the DOHs use of the System, whether such information has been furnished or generated prior to, during, or following termination of the Project.

b.

Data that maybe used for testing and actual operation of the system like data on patient or persons and licensing health facilities, goods, and services or other data that will encroach into the privacy of or jeopardize the interests of persons, and concerned entities or provide due advantage of third parties are considered confidential.

c.

The DOH shall not, without the Consultants prior written consent, use any Confidential Information received from the Consultant for any purpose other than the operation, maintenance and further development and/or completion of the Project. Similarly, the Consultant shall not, without the DOHs prior written consent, use any Confidential Information received from the DOH for any purpose other than those that are required for the performance of the Project. 9. For the purpose of review and approval of documents and other outputs by the DOH, the following are the arrangements: a. The Consultant shall prepare and submit to the SDT the materials or documents for the DOHs approval or review through the Project Manager. b. The SDT shall review the functional and technical aspects of all outputs submitted by the Consultant within three (3) working days from receipt of the documents. c. Any part of the Project covered by or related to the documents to be approved by the DOH shall be executed only after the approval of these documents. Likewise, all documents supporting progress payment shall have to go through the same process.

d.

Within three (3) working days after receipt by the SDT of any document requiring DOHs approval, the group shall either return one copy of the document to the Consultant with its approval endorsed on the output/document or shall notify the Consultant in writing of its disapproval of the document and the reasons for disapproval and the modifications required. e. Any document shall not be disapproved except on the grounds that the document does not comply with some specified provision of the Contract or that it is contrary to good industry practice.

f.

If the DOH disapproves the document/output, the Consultant shall modify the document/output and resubmit it for the end-users approval. If the end-users approve the output for modification(s), the Consultant shall make the required modification(s), and the document shall then be deemed to have been approved unless such modification as agreed upon has not been done.

g.

If any dispute or difference occurs between the DOH and the Consultant in connection with or arising out of the disapproval by the end-users of any outputs and/or any modification(s) to an output that cannot be settled between the parties within a reasonable period, then, such dispute or difference may be referred to the heads of the end-users offices and the responsible Consultants Adjudicator for

determination.

h.

The end-users approval, with or without modification of the document/output/material furnished by the Consultant, shall not relieve the Consultant of any responsibility or liability imposed upon it by any provisions of the Contract except to the extent that any subsequent failure results from modifications required by the IMS or inaccurate information furnished in writing to the Consultant by or on behalf of the DOH. XI. Qualifications of the Consultant: Type: Firm Individual /

The following qualifications shall be required in evaluating the Consultant: 1. Experiences At least three (3) years working experience in systems analysis and design and software development. 2. Qualifications of Project Team Members Minimum members of the project team are as follows:

1.

Project Manager with a bachelors degree related to Business/Computer/ Systems/Process/ Information Engineering/ Information Technology, Systems/Software Development or other related course.

2.

Subject Matter Expert with a degree on medical or allied profession, familiar with the health emergency system, seasoned M&E expert in the field of health and has an adequate understanding of the various processes and operations of health programs, interventions, especially health in emergencies.

3. 4. 5.

Senior Systems Analyst with a bachelors degree related to Systems and Software Development. Programmers with programming knowledge and skills on PHP Scripting Language, and MySQL Database Management and Administration. Two (2) Encoders - with encoding experience and skills

XII. Eligibility and Shortlisting Criteria: * Applications for eligibility will be evaluated on a pass/fail basis. Criteria and Rating System for shortlisting are as follows: A. Applicable Experience A. Work similar to the Project B. Work experience related to the Project B. Quality of Personnel 1.Education 2.Relevant Training C. Current Workload (No. of workload with equivalent rate) 25% 15% 20% 40% 25% 15% 40%

** Consultants shall be ranked. XIII.Technical Evaluation: Only those who are shortlisted shall be evaluated. 1. Quality of Consultant/s Assigned to the Job 30% a Education b Training c Current Workload Total Grade 2. Experience and Capability of Consultant/s 20% a b Experience Similar to the Project Experience Related to the Project Total Grade 3. Plan of Approach and Methodology 50% a b c d Clarity and Simplicity Feasibility Innovativeness Comprehensiveness and completeness, thoroughness or adequacy e Quality and interpretation of project requirements, problems and risks f Sustainability g Work plan adequacy, completeness, viability, workability Total Grade 5 5 5 10 10 5 10 50% 15 5 20% 15 5 10 30%

*** The minimum score required to pass the technical evaluation is 70 points. XIV. PAYMENT # 1 2 Proposed Terms of Payment by Major Outputs: DELIVERABLES Inception Report (including project plan) Workshop Output Reports System Assessment Report (with recommendations, revised forms) Communication and technology solutions Feasibility Study and Plan Implementation Plan Change Management Plan Capacity Plan Risk Management Plan Sustainability Plan Functional Design Document Technical Design Document PERCENT (%) 15 10

20

PAYMENT # 4

DELIVERABLES System Presentation System Test Report Certificate of Users Acceptance Standard plans, policies, procedures and guidelines Implementing guidelines of IPFLIS Security, policy and procedure manual Information security management system Other policies and guidelines System Implementation Report Software Operations Manual Updated Functional and Technical Design Document Source Code Terminal Report (After the Warranty Period)

PERCENT (%) 25

20

6 Total:

10 100

XV. Project Cost/Budget: The financial proposal shall not exceed the Approved Budget for the Contract (ABC) of Nine Million Pesos (PHP 9,000,000.00) inclusive of taxes and duties. Those exceeding the ABC shall be automatically rejected. The cost includes professional services to develop the Integrated System for a period of six (6) months starting from the issuance of the Notice to Proceed. XVI. Evaluation Procedure:

Quality Cost Based Evaluation XVII. Sustainability Factor:

All offices in the DOH with its CHD and Hospital coordinators will be responsible for operating and ensuring that data/information is regularly updated. The IMS shall provide software and hardware technical support to maintain the system. XVIII. A. Documents Required for Submission: Eligibility and Shortlisting

1. Letter of Intent 2. Consultants References for the last five (5) years Annex 1.0 Consultants References 3. Curriculum Vitae (CV) of the Consultant Annex 2.0 Curriculum Vitae 4. Certificate of PhilGEPS Registration 5. TIN B. Technical Evaluation

Only those who are shortlisted shall be entitled to submit the following:

1.

Work Methodology. Provide concise, complete and logical descriptions on how to carry out the activities or services to meet all requirements of the TOR.

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2.

Required Resources. List down facilities and other resources to be provided by the DOH that may include support facilities such as office space, equipment, administrative support and others that would be needed to carry out the project. 3. o o o o o XIX. Financial Proposal Summary of Costs Breakdown of Price per Activity Reimbursable per Activity Miscellaneous Expenses Payment Scheme and/or Breakdown Annex 3 Annex 4 Annex 5 - Annex 6

Duration of Engagement, Timeline and Level of Effort:

The maximum project duration is six (6) months from the issuance of Notice to Proceed and inclusive of three (3) months warranty period. Prepared by: _____________________________________ JOVITA V. ARAGONA Chief, Systems and Software Development Division Date: February 2010 Noted by: _________________________________ CRISPINITA A. VALDEZ Director III Information Management Service Department of Health IMS Clearance: Approved Disapprove due to ______________________ _____________________________________ CRISPINITA A. VALDEZ Director III, IMS Date Received by TACT: _______________ Received by:_________________________ Date TACT Verification: Ok to proceed Please make adjustments on the following:

Reviewed by:

TACT Technical Secretariat Member Noted:

TACT Head

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